UPDATE 1-London's blue-chip index gains ground; Sirius Minerals sinks

Britain's FTSE 100 steadied on Tuesday as oil heavyweights lifted the blue-chip index while the impact on other major sectors of the attack on Saudi crude processing facilities faded.

The FTSE 100 was 0.3% higher, with Shell and BP continuing to feel the benefit of the huge rise in oil prices since the attack on Saturday on the world's biggest processing plant. The midcap FTSE 250 fell 0.2% as of 0752 GMT, dragged down by a collapse in the shares of fertiliser maker Sirius Minerals after the company cancelled the bond tender at the heart of a crucial project in northern England.

Heightened geopolitical worries and global slowdown concerns have sent investors flocking to so-called defensive sectors such as healthcare and tobacco stocks, ahead of a widely expected rate cut by the U.S. Federal Reserve on Wednesday. AstraZeneca, Diageo and British American Tobacco were among the biggest boosts on the main index.

"There is a caveat, and that depends on whether we see further gains in the coming days, as investors look to possible retaliation, as well as the prospect that we could see further damage to output capacity," CMC Markets analyst Michael Hewson said. On the mid-cap, Sirius Minerals plunged 52% to an all-time low after the fertilizer maker said it would scrap a planned $500 million bond sale as the British government declined to provide support to facilitate its financing.

Meanwhile, Woodford Patient Capital Trust rose 2.8%. Its portfolio manager Woodford Investment Management reduced its stake in specialty biopharmaceutical company Circassia Pharmaceuticals to less than 5%. Capping gains on the main bourse, housebuilders Taylor Wimpey and Persimmon slipped more than 1.6% each after a government body criticised the Help to Buy scheme which makes it easier for first-time buyers to afford a home.

Among other London-listed companies, retailer French Connection slid 12% and recruiter Staffline dropped 15.7% after downbeat half-year reports.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)